Big data, in short, helps business to find efficiencies in places they either didn’t think of or couldn’t gain access to previously, giving market leaders the opportunity go from a hunch to a certainty.
Electronic data systems, gained prominence in the finance sector back in the 1960s, when machines like the Quotron began to deliver electronic stock market quotations directly to users.
Suddenly brokers, traders and investors alike could monitor prices quickly and efficiently – moving on from reliance on ticker-tape machines and phone calls.
High frequency data analysis has become the norm. As an early adopter of the technology the finance sector has reaped the benefits for many years, whilst less-efficient business peers risk hanging onto old ways until the end.
But how can this evolving technology help the property market?
While property is an industry worth billions in the global economy, growth opportunities are restricted by parochial methodologies and many players have been reluctant to introduce new technology.
Think of what property businesses could achieve if they leveraged all possible data existing on both the supply and demand side of the equation.
Investors of all levels would be able to spot trends, such as where property is most in demand, most needed and most valued, as well as become more granular in their approach to property by considering which features help and hurt the market.
Property valuations, investment and research would no longer need to be viewed as a ‘dark art’, practiced by those with a few well-placed personal relationships to justify their claims but instead would become precise and transparent.
New technology will allow property professionals to shorten the data sorting process and introduce more efficient business practices, allowing smart companies to outplay or buy out less efficient competitors.
Estate agents will be able to diversify their offerings, providing customers with further value-added services. Businesses will no longer compete on pricing per transaction, but rather on overall value provided to the customer.
As technology advances, developers, agents and investors will no longer need to outsource specialist work, such as conveyance, surveying and legal services, as data and analysis systems will allow them to bring these tasks in-house at a fraction of the cost.
New data systems will also allow investors and property developers to have a clearer understanding of the market and market forces. It will be possible to look at minute details, such as office spaces and utilities that are being used, and where prices and people are moving.
This influx of information in the market will provide greater security around the ‘buy side’ of a transaction.
These benefits will extend beyond the traditional realm of property specialists. Facility managers will feel more comfortable in upgrading services when they know exactly how they are being used.
Homeowners will be more confident in switching to new energy solutions when they know exactly how much it will improve their outgoings. City planners will be able to improve urban transport when they have data predicting traffic patterns.
Ultimately, introducing big data into the property market will see greater confidence instilled, as developers no longer fear all market movements. Investors will be able to understand if they really are getting a good deal or not, and agents will be able to back up their assertions with hard founded data.
The possibilities of big data in property are endless – the market must simply be prepared to embrace it.
Sourced by Gavriel Merkado, co-founder and CEO, REalyse